European shares rose on Thursday, boosted by gains in technology stocks, after strong forecasts from Micron and Qualcomm eased concerns about rising sector valuations, while a decline in oil prices provided additional support to the markets.
The pan-European STOXX 600 index rose 0.4% to 637.89 points, and Germany’s DAX index climbed about 0.3% to 24,824.74 points, while Britain’s FTSE and France’s CAC remained stable at 10,470.45 and 8,389.23 respectively.
The AI-related rally has resurfaced after US chipmakers Micron and Qualcomm unveiled strong forecasts, temporarily calming investor fears that the large gains made by global AI stocks may have exceeded their justifiable levels.
European technology stocks, which have gained around 30% this quarter, rose 1.7% to lead the European index's gains.
Infineon's stock jumped 5.2%, while STMicroelectronics' stock rose 3.7%. Shares of semiconductor equipment companies BE Semiconductor and ASML also climbed more than 3.5% each.
Shares of Siemens Energy, which specializes in artificial intelligence and energy equipment, added about 1%.
The continued declines in oil prices have also boosted investor sentiment, with more stranded oil tankers leaving the Strait of Hormuz.
On the individual stock front, H&M shares fell 1.2% after the Swedish fashion company reported second-quarter operating profits that missed market expectations, while the European retail sector index rose 0.4%.
In contrast, EasyJet shares jumped 5.5% after the British low-cost airline rejected a fourth takeover bid from US investment firm Castle Lake.
